In a pivotal government meeting held on March 23, 2025, in Utah, discussions centered around the complex issues surrounding Rocky Mountain Power's (RMP) rate case, particularly focusing on the allocation of wildfire liability insurance premiums. The session featured testimony from Peter Kelly, a partner at FTI Consulting, who was engaged by the Division of Public Utilities (DPU) to provide expert insights into underwriting and actuarial practices relevant to the case.

As the meeting unfolded, Kelly shared his extensive background in commercial insurance, highlighting over three decades of experience in underwriting and risk assessment. He emphasized that the current method used by RMP to allocate wildfire insurance premiums deviates from industry norms. According to Kelly, adopting a more standardized risk-based approach could significantly reduce the premiums allocated to Utah, suggesting that the current allocation may not accurately reflect the state's contribution to the overall risk.

Kelly's testimony also addressed the rising costs of wildfire liability insurance, asserting that recent increases are likely influenced by negligence-related incidents, despite claims to the contrary from other parties involved in the case. He pointed out that the underwriting process allows for discretion, enabling underwriters to incorporate various factors, including past incidents, into their pricing decisions.

The meeting also included discussions about the procedural aspects of the testimony, with corrections to previously filed documents being acknowledged and accepted without objection. This procedural clarity was crucial in ensuring that all parties had access to accurate information as the case progresses.

As the session concluded, Kelly's insights underscored the importance of aligning insurance practices with established industry standards, potentially paving the way for a more equitable distribution of costs among stakeholders. The implications of this testimony could resonate beyond the immediate case, influencing future discussions on insurance practices and regulatory frameworks in Utah and beyond.